Shared Workspace Payment Processing: Cost Savings and Compliance
“Carr Workplaces has saved tens of thousands per center with Place this year alone. The integration with the essensys platform means simplified payment management and a seamless online purchasing experience for customers.”- Ashley Buckner, SVP, Sales & Operations, Carr Workplaces
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The shared workspace – or Coworking, serviced office, or flexible workspace – industry has gone from niche to mainstream rapidly over the past few years. The growth trajectory of this market has brought a slew of new implications across all levels of business, especially finance. Details around cash collection, compliance, and payment processing for Coworking and shared workspaces are now priorities that workspace business owners of any size can’t afford to neglect.
In this article:
Advanced Platform Capabilities
We previously wrote about the pillars of cash collection, storing data, financial reporting and having a secure and compliant process in place. Payment gateways are vital to any organization that accepts credit or debit cards. Between on-demand desks, meeting rooms and rental fees, transaction volume is increasing and it’s even more critical for operators to understand the intricacies of payment processing.
Where credit card processing companies are concerned, the more transactions made from meeting room bookings, monthly memberships or rental fees, the more income in their pockets. And less in yours.
Place, formerly RentShare, is an integrated payments platform built exclusively for the property sector. It’s helping workspace providers improve operating efficiencies, optimize revenues and streamline payment processing functions. And essensys is bringing it to you with our latest integration. Together, Place and Operate offer the valuable benefits of cost savings and compliance to the workspace market.
Cash Collection and Cost Savings
Avoiding electronic payment processing fees has significant savings potential for workspace operators. In fact, we’ve done the math. According to Place’s market survey data, on average a shared workspace operator bills approximately $121,000 per month and collects nearly 70% of that by card – whether credit or debit. Given these numbers, at a weighted average fee of 2.9% or significantly higher, the average operator loses over $2,400 per month, per center, which equates to roughly $30,000 per year for just one center.
Integrated ACH payments and direct debits can become expensive. Some processors, for example, charge 0.75% of the amount being paid. While non-integrated options are time-consuming, hard to manage, and often not easy to secure. Workspace operators may not realize that there are special procedures and permissions required for ACH payments if the date or amount to be paid fluctuates month to month. Which is where an experienced third-party processing platform becomes a value-add to center managers.
When it comes to compliance, any sized business that collects electronic payments is required to adhere to Payment Card Industry Data Security Standard (PCI DSS). Large-scale national operators who can dedicate a finance specialist to the task are well aware of the legal and compliance requirements of adherence and processing compliance. However, smaller operators running one or two locations are cramped for time and resources to address critical compliance issues.
Data security is a subject that demands attention in any size business. Properly handling and storing credit card information falls into this category as this information can be susceptible to internal and external threats targeting your organization – whether malware and cyber-attacks or untrusted employees. Third party payment processing companies such as Place are your safest bet. Their platforms up to date, able to encrypt data, secure, monitored, and offload responsibilities from your busy shoulders, not to mention, keep your business out of the grey area.
State laws, Federal banking regulations, and the merchant processing agreements – the contract you signed with the credit card networks – impose numerous additional requirements on operators. The biggest question operators have is who and when can someone charge extra, or have a second list of pricing, just for customers paying by card. The answer is simple, no one can for swipe/chip payments, and only specialized third parties, like Place, can for online payments. Merchants who impose an online convenience fee, must use a fixed dollar amount, never a percentage, and charge the same fee for credit, debit, and ACH payments.
More Income and Peace of Mind
Operate from essensys is giving workspace providers the ability to seamlessly automate and manage finances. With the newest platform integration with Place, we’re now saving our customers thousands of dollars a year and simplifying payment management. For more information on how to manage your workspace finances more seamlessly while also saving money get in touch today.
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